The Financial Reporting Council (FRC) has launched an investigation into Deloitte’s audit of the UK clothing retailer Joules for the year ending 30 May 2021. Joules, a Leicestershire-based company founded in 1989, struggled to survive during the pandemic as retail was severely impacted, leading to a significant drop in attendance. The retailer was eventually saved from bankruptcy by Next in a £41 million deal that preserved around 1,450 jobs. However, Next announced last month that it had initiated a new consultation on job cuts.

Deloitte had signed the accounts of Joules before it went bankrupt. In response to the investigation, a Deloitte spokesperson stated that the firm would “fully cooperate with the Financial Reporting Council’s investigation” and “remain committed to the highest standards of audit quality.” Deloitte has stated that it will fully cooperate with the FRC investigation and remains committed to maintaining the highest standards of audit quality.

This investigation comes after Deloitte faced fines and reprimands in recent years for deficiencies in audits of other companies, such as building materials group SIG and software company Autonomy. The FRC aims to ensure that auditors maintain high standards and adhere to proper procedures in order to protect the integrity of financial reporting.